CHAPTER 19

MACROECONOMIC POLICY

AND COORDINATION UNDER

FLOATING EXCHANGE RATES

Figure 19-1 Effects of a Fall in Export Demand

continued...

Figure 19-1 continued...

Figure 19-2 A Rise in Money Demand under a Floating Exchange Rate

Figure 19-3 Nominal and Real Effective Dollar Exchange Rate Indexes, 1975-1996

Figure 19-4 Output Determination in a Two-Century World

Figure 19-5 Monetary Contraction in Home

Figure 19-6 Fiscal Expansion in Home

Figure 19-7 Exchange Rate Changes Since the Louvre Accord

Figure 19-8 Exchange Rate Trends and Inflation Differentials, 1973-1997

Figure 19AI-1 Hypothetical Effects of Different Monetary Policy Combinations on Inflation and Unemployment

Figure 19AI-2 Payoff Matrix for Different Monetary Policy Moves